(1) Paragraph (2) applies where -
(a) a cryptoasset exchange provider or custodian wallet provider ("cryptoasset business") establishes a business relationship, or enters into a transaction, with a customer that arises out of any of its activities as a cryptoasset business, and
(b) the activity is not -
(i) within scope of the jurisdiction of the Financial Ombudsman Service, or
(ii) subject to protection under the Financial Services Compensation Scheme, or
(iii) within scope of the jurisdiction of, or subject to protection under, either of the schemes referred to in paragraph (i) or (ii).
(2) Before establishing the business relationship or entering into the transaction, the cryptoasset business must inform the customer of the position in paragraph (1)(b)(i), (ii) or (iii), as the case may be.
(3) In this regulation -
(a) the Financial Ombudsman Service means the scheme established under Part 16 of FSMA [Section 226 was amended by the Financial Services Act 2012 (c.21), section 39 and
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